Beyond The Limits 8.01.2024

?? Welcome to our newsletter for the week. We have gathered some of the most interesting news and updates from the world of circularity, technology, fashion, and luxury.

?? Sustainable Fashion?

The fashion industry's focus on sustainability witnessed an individualistic surge in 2019, seen in the development of eco-friendly products. The pandemic disrupted the trajectory in 2020, shifting initial attention to survival over sustainability. However, a pivotal shift occurred in the latter half of the year, where sustainability emerged as a crucial strategy for recovery. In 2021, despite pandemic challenges, the industry acknowledged the importance of unity, emphasizing collaborations and transparency. The term "greenwashing" gained prominence, underscoring the need for genuine sustainability efforts. This trend continued into 2022, with increased scrutiny on projects claiming sustainability without substantial proof, demanding legal actions against greenwashing. The industry intensified its focus on textile-to-textile recycling and technologies addressing clothing waste. As of 2023, the industry diverges into ultra-fast fashion and ultra-slow fashion, with a growing emphasis on initiatives like repair, swap, and resale, marking the rise of Green Friday. Collaborations persist, recognizing the strength in unity and the need for enhanced transparency. Germany reflects on a year of the Supply Chain Act, aiming to prevent child and forced labor in the supply chain, while the EU Supply Chain Act is on the horizon. A general push for more legal regulations in sustainability is observed. Each month of 2023 reveals distinctive sustainability efforts, from increased transparency to textile recycling advancements. The industry grapples with complexities, exploring innovations, and responding to legislative changes. The annual review reflects the dynamic evolution of sustainability in fashion.

??? Made in Italy

The inauguration of the very first Made in Italy high school has become a reality, with enrollment set to commence from January 23, 2024. Operational instructions for enrolling in the first classes have been disseminated to educational institutions and regions following the approval of the school by Italy's parliament on December 20, for the 2024/2025 school year. This pioneering high school aims to bolster and champion Italian excellence, creativity, and entrepreneurship. The Minister of Education and Merit, Giuseppe Valditara, emphasized the school's role in delving into the historical, geographical, artistic, and cultural aspects of Italy's industrial development while providing a solid foundation in economic, legal, and technological fields. The high school endeavors to bridge the gap between required skills in various sectors and those imparted by the educational system. Compulsory subjects encompass Italian language and literature, history and geography, law, political economy, foreign languages, mathematics, natural sciences, and art history. Adolfo Urso , Minister for Enterprise and Made in Italy, lauded the innovative curriculum, combining tradition and innovation, and stressed the school's mission to prepare talents for the country's economy, emphasizing the essential role of the 'Business and Skills for Made in Italy' Foundation as a vital link between the school and the business world. The high school offers students the opportunity to develop entrepreneurial skills conducive to the promotion of specific Made in Italy production sectors, aligning with the country's longstanding global prominence in excellence, creativity, and entrepreneurship.

?? ? Metaverse?Game

Gamefam , a leading American game developer, has released its inaugural State of Brands in Metaverse Gaming year-end report, examining brands' success in navigating the digital landscape. In 2023, Gamefam reported over 7.5 billion gameplay sessions, solidifying its role in integrating cultural phenomena like Greta Gerwig's Barbie, NFL, and Warner Music Group into Roblox and Fortnite . These platforms now stand as the preferred choices for brand engagement with Generation Z and Generation Alpha. The report underscores the significance of virtual merchandise, with 2.3 million items sold. Joe Ferencz , CEO of Gamefam, foresees continued growth in the fashion, retail, and beauty sectors for 2024. Reflecting on past years, active engagement within gaming platforms, such as Roblox and Fortnite, has proven more valuable for brands compared to passive platforms like TV Commercials or TikTok videos. Challenges arose when activations failed to authentically integrate with these communities, highlighting the importance of understanding the gaming ecosystem. As Roblox and Fortnite gain prominence, the report anticipates a transformative 2024, driven by strategic investments, offering brands opportunities to create immersive experiences and meaningful connections. McKinsey's projection of over $5 trillion in global metaverse spending by 2030 provides vast opportunities for retailers targeting the digital-native demographic, while Fortnite's creative mode and expansions offer potential for lasting impact by fashion and beauty brands.

?? Luxury Fashion

Luxury brands and retailers are bracing themselves for a subdued period in the next six to 12 months as global consumers, particularly aspirational ones, exercise caution in uncertain economic times. Ongoing conflicts in Ukraine and the Middle East, coupled with upcoming elections in the U.S. and the U.K., contribute to consumer anxiety and a decline in spending. With lingering questions about the Chinese luxury market and prevailing high interest rates, industry experts foresee a conservative outlook for 2024. Analysts from Barclays and 汇丰 express caution, predicting a return to normalized growth, but with potential negative impacts on some brands. Altagamma and Bain & Co. anticipate softening performance in personal luxury goods in 2024, emphasizing the need for brands to demonstrate resilience, relevance, and renewal. Mytheresa CEO Michael Kliger notes the challenge of the aspirational customer segment, suggesting a positive economic outlook and more accessible price points are key to regaining their support. Analysts agree that a lackluster year lies ahead for major brands, with organic growth projections ranging from 4 to 8 percent. Chinese demand remains uncertain, with factors such as global spending habits, economic stimulus measures, and a shift in consumer behavior playing key roles. Amid these challenges, industry leaders express optimism for the resilience of the luxury market, acknowledging the need for adaptation during this period of normalization.

??? Beauty

The Body Shop has secured a significant milestone as the first global beauty brand to achieve 100 percent vegan certification from The Vegan Society . Covering all product ranges, including skincare, bodycare, haircare, make-up, and fragrances, the certification results from a meticulous process, assessing every supplier and manufacturer of raw materials across the entire product catalogue. The Body Shop, previously a pioneer in combatting animal testing in cosmetics, achieved this ambitious target set in 2021 when 60 percent of its products already carried The Vegan Society trademark. The move aligns with the growing significance of vegan cosmetics, predicted to see a 6.31 percent compound annual growth rate and reach $24 billion by 2028. Acknowledging evolving consumer demands, The Body Shop's CEO, Ian Bickley , emphasized the brand's commitment to vegan beauty, setting a global standard for the industry. The Vegan Society extended congratulations for this substantial achievement, anticipating its positive impact on the wider beauty sector's efforts to reduce animal use and exploitation.

??Congrats to Adolfo Urso , Roblox , Fortnite , The Body Shop , Ian Bickley !

?? Stay tuned for more updates and, as always, feel free to share your thoughts with us!

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